KPMG: 41 per cent of people working in finance followed their parents into the sector

KPMG found 41 per cent of people working in finance had parents in the same sector, which compares to the national average of 12 per cent.

This trend was most prevalent in younger people with over half (55 per cent) of 16-24 year olds in financial services having followed in their parents footsteps, which was true of just 21 per cent of 16-24 year olds in other sectors.

Tim Howarth, head of FS consulting at KPMG, said: “The fact that people in financial services are more than three times more likely than the national average to have followed in their parent’s career footsteps is staggering. There are a few, understandable reasons why that may be - it’s a growing sector and of course, it fits with the finding that those working in the sector enjoy their roles, whilst those outside looking in, don’t fancy it – but, whatever the reason the consequence is the same; a narrow and narrowing talent pool and not enough social mobility. That is a big challenge for the future of the sector.”

While more than 40 per cent of people outside the sector said they wouldn’t work in financial services because it ‘sounds boring’, KPMG said this contrasts with the feelings of people working in finance who are happier than average, with 87 per cent of bank, insurance or asset management employees saying they like their job compared to 82 per cent of workers in different sectors.

And those aged between 25 and 34 working in finance are the happiest employees in the UK, with 90 per cent saying they enjoy their job. And yet, two thirds (58 per cent) of 25 – 34 year olds working outside the sector said they would not consider financial services for their next career move.

Mr Howarth said: “There’s clearly a gap between what the public think, and the realities of working in financial services. That has to be addressed if we are to attract the diverse mix of skills and experiences needed to navigate the changes going on in financial services and society. Technology and customer engagement is a priority for most of my clients right now, so people working in retail, leisure or IT could have a huge amount to offer. But, the sector has an image problem that’s putting off that talent.”

However, whilst people working in financial services are on the whole happier, the main driver for working in their current role is salary. When asked their motivation for being in their current role, over a third (31 per cent) of financial services employees said salary, which was followed by ‘it’s interesting’ (16 per cent) and ‘it has good progression opportunities’ (16 per cent).

These motivations are very different with those in other sectors, just 16 per cent of whom listed salary as a key driver. Outside of financial services, the most common reasons for being in a role were ‘it’s interesting’ (29 per cent) and ‘it’s in my local area’ (23 per cent).

Jon Holt, head of financial services KPMG, said: “Whilst it seems sad that FS workers are only half as likely to find their jobs interesting as people in other sectors, the fact that people feel they are well rewarded with both salary and career progression is clearly the reason why FS workers are happier than their peers.

“But, the workforce is changing. We are always told that Millennials and Generation Z are more interested in their social impact than their finances and so our sector has to get more imaginative in the way it attracts and retains staff. As automation takes away some of the more monotonous roles in finance, and boundaries between sectors like technology, retail and financial services disappear, firms have to work harder to appeal to young talent. If financial services can’t attract the brightest talent pipeline, someone else will.”